NTPC Shares Surge After Subsidiary Signs Deal for 25-GW Renewable Energy Project in Rajasthan

Shares of NTPC, a public sector company, gained attention on Tuesday following a deal made by its subsidiary, NTPC Green Energy, with the Rajasthan government to develop a 25-gigawatt renewable energy project.

On September 30, during the Rising Rajasthan Investor Meet in New Delhi, NTPC Green Energy Limited (NGEL) signed a memorandum of understanding (MoU) with the Rajasthan government for the project.

On Monday, NTPC’s shares closed at ₹443.10, rising 1.3% on the Bombay Stock Exchange (BSE), even as the benchmark Sensex fell by 1.49%. The company’s shares have skyrocketed by 43% in 2024 so far and 175% over the last two years, with a current market capitalization of ₹4,29,659 crore.

For the quarter ending June 30, 2024, NTPC reported a standalone net profit of ₹4,511 crore, an increase of 11% year-on-year. The revenue from operations also grew to ₹44,419.22 crore, marking a 13.5% increase compared to ₹39,122.25 crore in the same quarter last year.

The total income for NTPC rose by 13.5% to ₹45,053.04 crore, while total expenses reached ₹38,276.03 crore, reflecting an increase of ₹4,748 crore year-on-year.

From a technical perspective, the stock’s relative strength index (RSI) is at 71.1. An RSI below 30 indicates oversold conditions, while above 70 suggests overbought conditions. The MACD stands at 6.5, indicating a bullish trend, and the stock is trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).